<
https://reneweconomy.com.au/regulator-to-force-gas-companies-to-be-clear-and-accurate-when-comparing-electric-appliances/>
"Western Australia’s Economic Regulation Authority has proposed changes to the
state’s consumer protection laws that would require gas companies to provide
clear and accurate comparisons with electric appliances when they attempt to
market their plans.
The draft decision was published this week in response to recommendations
following a standard review of the Gas Marketing Code.
Its draft decision notes that when promoting gas plans, retailers make
comparisons between the performance of gas and electric appliance that don’t
necessarily apply.
“This comparative marketing may not be well understood by customers for several
reasons, including that gas and electric appliances convert input energy to
heat differently,” it says.
“Comparing energy and costs in terms of output heat is more useful because it
gives a more realistic depiction of how efficient an appliance is and how much
it is likely to cost to run it.”
The proposed changes would require retailers to provide clear and accurate
information on cost effectiveness, energy efficiency, health, sustainability
and greenhouse gas emissions and required plan information to be standardised
so customers can make a proper, informed comparison.
Jay Gordon, a gas market analyst with IEEFA, says consumers are currently left
comparing “apples and oranges” and that the proposed changes mark the first
time a regulator has sought to address this “information asymmetry”.
“We know gas appliances can sometimes use five times the energy as an electric
appliance,” Gordon said. “If you’re just looking at the unit price of gas or
electricity, you’re not getting the full picture of what those fuels are going
to cost you.”
Another example Gordon says are star-rating systems as gas-appliances are not
included under the government-administered rating scheme but are retailed under
a voluntary industry program.
“You can have a five-star gas heater that is more efficient than a three-star
heater but that is nowhere near as efficient as an electric appliance like a
split system,” he said.
As Australian governments increasingly push to electrify homes, he says these
sorts of changes to standardise and ensure correct information will become
increasingly important.
“Any time there is a government decision to support electrification in
households particularly, we’ve seen it in states like Victoria and the ACT,
both states have banned gas connections in new homes,” Gordon said.
“We tend to see industry come out and push back on the basis that it’s limiting
consumer choice, but the reality is that assumes consumers have made an
informed, clear choice to use the most expensive form of energy when in reality
it’s not that simple.
“You have these extremely well-funded campaigns promoting gas as a fuel source
and encouraging consumers to use gas in the home, but at the same time the
industry has been clouding the real cost.”"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
